Forex news from the European trading session - 25 November 2020
Headlines:
- ECB's de Guindos: ECB currently calibrating different stimulus options
- UK PM Johnson: Of course we're not going to extend the Brexit transition period
- US MBA mortgage applications w.e. 20 November +3.9% vs -0.3% prior
- US considers lifting European travel restrictions - report
- ECB's de Guindos: Bank dividend suspension was temporary, extraordinary
- ECB's de Guindos: Yellen's appointment is good news for the US and world economy
- EU's von der Leyen: I cannot tell today if in the end there will be a Brexit deal
- Switzerland November Credit Suisse investor sentiment 30.0 vs 2.3 prior
- EU's von der Leyen: There is some progress in Brexit negotiations
- Germany reports deadliest day of the virus pandemic, another 18,633 new cases
Markets:
- NZD leads, CAD lags on the day
- European equities mixed; E-minis down 0.1%
- US 10-year yields down 0.5 bps to 0.875%
- Gold up 0.3% to $1,813.55
- WTI up 0.7% to $45.25
- Bitcoin up 2.0% to $19,331
It was a largely quiet session with little of note in terms of headlines or data releases for investors and traders to work with.
After a surge higher in risk yesterday, more tepid tones were observed in trading today and that is seeing little change across the market in general.
Equities held slight gains to start the session but fizzled to trade mixed and little changed currently ahead of North American trading.
The bond market was disinterested for the most part and put together, that is keeping major currencies more mixed and also not much changed so far today.
The dollar was mildly softer initially with EUR/USD climbing from 1.1900 to 1.1930 but that faded soon enough, with the pair now hovering around 1.1880-90 levels.
GBP/USD had a choppy session, rising from 1.3340 to 1.3385 before the highs yesterday capped the upside momentum and the pair fell to 1.3305.
The 100-hour moving average there held the drop, as it has done previously this week, and cable is back up to trading around 1.3350 currently.
The aussie and kiwi were initially weaker but have seen those declines trimmed, though AUD/USD is hovering around 0.7350 but off lows of 0.7325 earlier.
Elsewhere, gold is continuing to keep a defense above $1,800 and its 200-day moving average for now while oil is keeping with the bullish breakout as price has been holding above $45 throughout the session.
Looking ahead, expect a potentially more hectic session to come as US traders will be preparing for the Thanksgiving holiday starting from tomorrow.
